Sat | Nov 27, 2021

JMMB makes $3b profit

Published:Wednesday | June 4, 2014 | 12:00 AM

JMMB Group made a profit of $3.06 billion at yearend March 2014, which, on the face of it, appears to be a decline from the previous year's $3.86 billion.

However, the earlier period was boosted by a one-off gain of $1.61 billion, and if you were to discount it, this year's profits have actually jumped by $792 million, the money market firm said.

The 2012-13 gain arose from the acquisition of the Capital and Credit Financial Group.

Gains made from acquisitions in the year just ended, was a much smaller $361 million.

JMMB is now a $207-billion company by assets, up from $167 billion. Its capital base expanded from $17 billion to just under $19 billion.

Its cash holdings grew fourfold, from just under $6 billion to more than $23 billion.

"Core growth was driven by JMMB's strategy of regional and business line diversification, as well as growing revenues faster than expenses," the company said at the release of its annual results.

JMMB says it remains focused on expanding its portfolio of services to build out an integrated financial services model, noting that one step in this direction was the acquisition of AIC Securities Limited in Trinidad and Tobago, a deal which closed in its first quarter on April 30.

Operating expenses for the group increased to J$5.67 billion, compared to J$4.62 billion for the prior year, due mainly to added operating costs for the Capital and Credit assets, as well as the acquisition of the other 50 per cent of Intercommercial Bank Limited.

For the current year, net revenue rose 38 per cent to $8.7 billion of which net interest income contributed more than $5 billion. Net interest income rose 13 per cent in the period due partly to acquired assets.

Expanded operations

Some of the gains were attributed to developments in Dominican Republic, where the operation was expanded with new offices in Santo Domingo. Here, the group noted, operating revenues were driven largely by increased volume and market opportunities.

JMMB has eight subsidiaries incorporated in Jamaica. The main activities of the company are securities brokering, securities trading, merchant banking, dealing in money-market instruments, operating a foreign-exchange cambio and managing funds on behalf of clients.